Revenue of NetEase for the December quarter jumped 53% from a year ago to 12 billion yuan, 12% above consensus forecasts. Non-GAAP net income soared 68% year-on-year to 4 billion yuan, 22% above consensus estimate, despite the weaker yuan.
Online gaming revenue drove NetEase’s earnings, jumping 62.8% from a year ago to 9 billion yuan, accounting for 71% of total revenue. Mobile gaming revenue soared 82.8% year-on-year to 5.8 billion yuan, accounting for 64% of total gaming revenue. PC gaming did not do badly either, up 36.3% year-on-year.
NetEase has had some incredible execution in recent years, and its pipeline still contains important new launches ahead such as Minecraft later this year.